Question

Which of the following is the practice of selling items below cost in order to build traffic and sales volume in a store?

A) Loss leader pricing.
B) Dynamic pricing.
C) Premium pricing.
D) Value-based pricing.

Answer 1

Loss leader pricing is the practice of selling items below cost to build traffic and sales volume.

Step-by-step explanation:

The practice of selling items below cost in order to build traffic and sales volume in a store is known as loss leader pricing. Loss leader pricing is a strategy where a retailer offers a product at a lower price than its competitors, sometimes even below its own cost, to attract customers and encourage them to make additional purchases.